The central bank said the agreement was part of a comprehensive strategy to help deal with currency and capital market volatility.
Published October 20, 2025
Six days before the crucial midterm elections, the Central Bank of the Republic of Argentina (BCRA) announced that it has signed a $20 billion exchange stability agreement with the U.S. Treasury.
The central bank said in a statement on Monday that the agreement sets out the terms of a bilateral currency swap operation between the United States and Argentina, but did not provide technical details.
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“Such operations will enable BCRA to expand its suite of monetary and exchange rate policy instruments, including the liquidity of foreign exchange reserves,” the central bank said.
The Argentine peso fell 1.7% on the day, closing at an all-time low of 1,475 pesos to the dollar.
BCRA said the agreement is part of a comprehensive strategy to strengthen its ability to respond to foreign exchange and capital market fluctuations.
The U.S. Treasury Department did not immediately respond to a request for details about the new swap line, nor has it issued its own statement on the deal.
U.S. Treasury Secretary Scott Bessent said last week that the deal would be backed by International Monetary Fund Special Drawing Rights converted into dollars held in the Treasury’s Exchange Stabilization Fund.
Bessent said the United States does not intend to impose additional conditions on Argentina beyond President Javier Millei’s government continuing to pursue austerity and economic reform programs to foster further growth in the private sector.
He announced several U.S. purchases of pesos in recent weeks, but gave no details.
midterm vote
Argentina’s Economy Minister Luis Caputo said last week that he hoped the framework for the swap deal would be finalized before the Oct. 26 midterm parliamentary vote, in which Mr. Millay’s party aims to increase the minority’s presence in parliament.
Mr. Milay has sought to resolve Argentina’s economic crisis through spending cuts and a significant reduction in the size of the government, but he has recently suffered a series of political defeats.
US President Donald Trump said last week that the US would not “waste time” with Argentina if Milley’s party loses in the midterm vote. The comments briefly sent shockwaves through local markets, but Bessent made it clear that continued U.S. support depended on “good policies” and not necessarily on the outcome of the vote.
He added that a positive outcome for Millais’ party would help thwart efforts to repeal the policy.
